Dublin, Ohio-based Cardinal Health reported a significant jump in earnings for the first quarter of its fiscal 2016, once again riding on growth in its pharmaceutical segment as the company saw increased volume from new and existing customers.
The pharmaceutical and medical products distributor reported $383 million in profit in the three months ended Sept. 30, up 44% from $266 million reported in the same period last year. The company also announced it had completed its previously announced acquisition of Cordis, a devicemaker formerly owned by Johnson & Johnson, on Oct. 2, shortly after the end of the quarter.
Cardinal's revenue grew 17% year over year to $28.1 billion. Pharmaceutical revenue was up 19% at $25.1 billion, and profit in the pharmaceutical segment increased 46% to $657 million thanks to strong performance in the company's generics program.
Medical supplies revenue grew 2% to $2.9 billion, which the company attributed to its branded products and home health platform. The $101 million in profit from that segment was an 11% dip from the same quarter in its fiscal 2015 but was still-better than expected.
Declining profit in the medical segment stemmed primarily from Cardinal's Canada business, in part due to unfavorable currency exchange rates. The numbers are also skewed by one-time benefit last year when Cardinal wound down its contract with devicemaker CareFusion, which is now owned by Becton Dickinson and Co.
Cardinal announced the closing of its acquisition of the Harvard Drug Group in July. Also during the quarter, the company launched a line of hospital-quality products available over-the-counter at retail stores.